Basic Policy on Distribution of Profits and Dividends

Nihon Kohden recognizes that returning profits to shareholders is one of management's most important tasks. The basic policy on distribution of profits and dividends is to maintain stable and continuous dividend payments while retaining necessary reserves for future business expansion. The priority for distribution of profits is i) investment necessary for future business expansion used in R&D investments, capital investments, M&A or alliances, and development of human resources, ii) dividends, and iii) share buybacks. The Company sets a target consolidated dividend payout ratio of 30% or more. Share buyback is considered in a flexible manner, taking into account comprehensively its future business deployment, investment plan, retained earnings, and stock price level.

Dividend per Share and Consolidated Dividend Payout Ratio

Years ended March 31, yen

2019 2020 2021 2022 2023 2024
(Expected)
Dividend Per Share(yen) 1Q ------
2Q 17.0017.0017.0019.0020.0030.00
3Q ------
FY-End 18.0018.0038.0048.0041.0031.00
Total 35.0035.0055.0067.0061.0061.00
Amount of Dividends(million yen) 2,9802,9804,6845,6615,131-
Payout Ratio(%) 26.630.225.724.230.033.1
Ratio of Total Amount of Dividends to Net Assets(%) 2.62.53.63.83.2-

Repurchase of Treasury Stock

Date of Repurchase

Number of Shares Repurchased

(shares)

Total Repurchase Amount

(million yen)

May 16, 2022 to June 2, 2022

322,500

999

February 3, 2022

289,800

896

May 14, 2021 to June 22, 2021

473,900

1,499

March 2, 2018

500,000

1,470

March 11, 2016

2,000,000

5,834

June 2, 2015

200,000

599

November 27, 2007

100,000

252

February 20, 2007

285,000

733

February 17, 2005

300,000

396

September 13, 2002

920,000

430

Cancellation of Treasury Stock

Date of Cancellation

Number of

Shares Cancelled (shares)

Ratio of the Total Number of

Shares Issued Before the Cancellation

June 10, 2022

500,000

0.56%

May 21, 2018

1,000,000

1.11%

May 20, 2015

1,800,000

1.97%